Payment Network DLT

Definition ∞ Payment Network DLT refers to a payment system built upon distributed ledger technology, such as a blockchain. This type of network facilitates the transfer of funds or digital assets directly between participants without requiring traditional intermediaries. It offers advantages such as faster settlement times, reduced transaction costs, and increased transparency and security. These systems aim to modernize payment infrastructure and enable more efficient global transactions.
Context ∞ Payment Network DLT is a significant area of development in financial news, particularly as central banks and private institutions explore its potential for cross-border payments and digital currency issuance. Debates often revolve around scalability, regulatory compliance, and the interoperability of different DLT-based payment systems. Future trends indicate continued experimentation and implementation of these networks to improve the speed and accessibility of both retail and wholesale payments.